Which of the following statements is false?
A) Purchasing power and the price level are inversely related.
B) The real balance effect refers to the change in the purchasing power of dollar-denominated assets as a result of a change in the price level.
C) The aggregate demand curve slopes downward because of the real balance, interest rate, and international trade effects.
D) A change in the quantity demanded of Real GDP is directly brought about by a change in interest rates.
D
Economics
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In the figure above, what is Gap's markup?
A) $50 B) $15 C) $35 D) zero
Economics
A widget costs $50 in the US and CAD$53 in Canada. The current exchange rate is 1USD=1.09CAD. Given purchasing power parity, the Canadian dollar would_______to equilibrate prices
a. Appreciate b. Depreciate c. Not change d. None of the above
Economics